Economy
IfW also lowers economic forecast for 2022
In the first year of the Corona crisis in 2020, the German economy shrank by 4.6 percent. Photo: Christian Charisius / dpa
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In view of the delivery bottlenecks and the corona pandemic, the Kiel Institute for the World Economy is significantly lowering its forecasts for the German economy.
The Kiel Institute for the World Economy (IfW) has also lowered its forecasts for the German economy significantly in view of the delivery bottlenecks and the fourth corona wave.
After an increase in the gross domestic product (GDP) of 2.6 this year, the IfW economists believe that the economy will only grow by four percent in 2022 – 1.1 points less than assumed in autumn. “But it will then go up steeply in 2023 with 3.3 percent (previously 2.3),” it said in a press release. In the first year of the Corona crisis in 2020, the German economy shrank by 4.6 percent.
“Overall, the dent in the recovery process caused by the ongoing wave of infections is somewhat larger than we had expected in our autumn forecast,” said IfW economic director Stefan Kooths. “Thanks to the greater progress in vaccination, the setback will not be nearly as serious as it was in the previous winter half-year. The economic consequences of the pandemic are still sensitive, but they are decreasing from wave to wave. “